SHORE AHA CLUB MEETING
APRIL - 2025
HOSTED BY:
Helen-Ann Lloyd
FEATURED SPEAKERS:
Rich Gilson
Claudia Jones
Introduction
In today's competitive market, understanding the nuances of home inspections and leveraging tools like home warranties can set you apart. Whether you ' re guiding buyers or sellers, these insights will help you manage expectations, mitigate risks, and enhance client satisfaction Let's dive into practical strategies to elevate your real estate practice.
Understanding Home Inspections
What Is a Home Inspection?
Preparing Buyers for the Inspection
Preparing Sellers for the Inspection
Navigating Condo Inspections
Common Challenges and How to Address Them
The Power of Home Warranties
What Is a Home Warranty?
Benefits for Sellers During the Listing Period
Benefits for Buyers PostClosing
Differentiating Your Listings with Home Warranties
Key Considerations and Limitations
Actionable Tips for Realtors
Setting Client Expectations
Communicating with Inspectors and Warranty Providers
Using Home Warranties as a Marketing Tool
Staying Informed on Industry Trends
Resources and Next Steps
Contact Information for Rich Gilson and Claudia Jones
Shore AHA Club
Membership Benefits
Recommended Reading and Tools
Understanding Home Inspections: A Realtor's Guide
What Is a Home Inspection?
A home inspection is a non-destructive, visual assessment of a property's structure, safety, and functionality As Rich Gilson explained, it identifies deficiencies without dismantling components due to practical and liability constraints. Key areas include:
Structural Integrity
Checking foundations, roofs, and walls for issues like leaks or cracks
Safety Concerns
Identifying hazards such as faulty wiring or unsecured railings
Functionality
Ensuring systems like plumbing and HVAC operate correctly
Realtors should clarify that inspections are not exhaustive. Limitations such as not accessing sealed crawlspaces or testing air conditioners in winter must be communicated to avoid misunderstandings.
Preparing Buyers for the Inspection
Buyers often have high expectations, assuming inspectors will uncover every issue Rich emphasized setting realistic expectations:
Educate on Scope: Explain that inspections focus on major issues, not cosmetic fixes like loose cabinet doors. Use the analogy of a general practitioner referring to specialists for deeper analysis.
Encourage Attendance with Boundaries: Buyers should attend but respect the inspector's focus Rich suggests discussing findings after each section (e g , exterior, upstairs) to keep buyers engaged without disrupting the process.
Highlight Deal Killers: Frame the inspection as a tool to identify critical issues (e.g., a failing foundation) rather than a wishlist for negotiations
Pro Tip: Before the inspection, review the seller's property disclosure with buyers to align expectations with known conditions.
Preparing Sellers and Navigating Condo Inspections
Sellers may be unaware of their home's issues, especially if they've lived there briefly or inherited the property. Rich and the group offered these strategies:
Encourage Pre-Listing Inspections
For older homes, a pre-listing inspection can identify issues early, allowing sellers to fix them proactively and present a well-maintained property
Address Obvious Fixes
Replace burnt-out light bulbs or secure loose fixtures to avoid unnecessary flags in the report
Ensure Accessibility
Utilities must be on, and crawlspaces or attics should be accessible Winterized homes pose challenges, so coordinate with listing agents to activate systems.
Pro Tip: Remind sellers that New Jersey now requires a seller property disclosure form, which can inform buyers and reduce surprises during inspections
Condo inspections differ significantly, focusing only on the unit's interior ("walls in") Rich highlighted:
Limited Scope
Inspectors don't assess common areas like roofs or shared garages unless directly tied to the unit (e.g., a private deck)
HOA Considerations
Buyers must understand that HOA-managed elements are their collective responsibility. Clarify what the HOA covers versus the unit owner ' s obligations
Challenges
Identifying which systems (e g , HVAC condensers) belong to the unit can be tricky in multiunit buildings.
Pro Tip: Set condo buyer expectations early, explaining that the inspection won't cover the entire building, reducing confusion post-report
Common Challenges and Home Warranties
Fear-Mongering Inspectors
Some inspectors overstate issues, alarming buyers. Rich advises choosing inspectors with construction backgrounds who offer solutions, not just problems.
Misinterpreted Reports
Buyers may misread structural concerns (e.g., mistaking settlement cracks for foundation failure) Realtors can bridge this gap by reviewing reports with buyers and consulting inspectors for clarity
Liability Concerns
Inspectors avoid actions like changing light bulbs due to insurance risks. Explain this to clients to prevent frustration
Case Study: A buyer panicked over a reported "structural issue" that was minor settlement The realtor consulted Rich, who clarified the crack was cosmetic, saving the deal and reinforcing trust
What Is a Home Warranty?
Claudia Jones described a home warranty as a service contract, not an insurance policy, covering repairs or replacements for major systems and appliances. Unlike homeowners insurance, it addresses wear-andtear issues, such as a broken HVAC or water heater, but has specific terms and exclusions
Benefits for Sellers During the Listing Period
First American Home Warranty offers sellers coverage during the listing period at no upfront cost, with payment due only at closing if the home sells Benefits include:
Financial Protection: Covers select systems (e.g., plumbing, appliances) for 180 days, excluding HVAC unless a $70 upgrade is added (up to $1,500)
Market Appeal: Signals confidence in the home's condition, reassuring buyers.
Cost Savings: Uses negotiated contractor rates, reducing repair expenses compared to retail pricing.
Example: A seller's attic fan failed during listing. The warranty covered its replacement, saving hundreds and maintaining buyer interest.
Home Warranty Benefits
Buyers receive a one-year warranty starting at closing, offering substantial benefits to new homeowners:
Budget Protection
Covers unexpected repairs (e g , HVAC, plumbing) without depleting savings. Plans range from $490 (basic) to $795 (max), a fraction of home costs
Flexibility
Buyers can upgrade plans within 60 days post-closing (e.g., adding pool coverage).
Peace of Mind
Mitigates risks from undetected issues, especially in older homes.
Note: Coverage excludes pre-existing conditions not in working order at closing, but First American doesn't typically require inspection reports unless a claim denial is contested.
Differentiating Your Listings with Home Warranties
Claudia emphasized warranties as a competitive edge:
Stand Out in Listings
Offering a warranty signals value, especially in lowinventory markets where buyers waive contingencies.
Closing Gifts
Realtors can gift warranties ($490–$795) or highlight seller-provided coverage to strengthen client relationships.
Marketing Materials
First American's portal provides customizable flyers and postcards to promote warranties in your branding.
Pro Tip: Mention warranties during listing presentations to show added value, even if sellers decline. It positions you as a proactive agent
Key Considerations and Limitations
Coverage Gaps: Seller plans exclude HVAC without the upgrade, and buyer plans may not cover modifications or external damage (e.g., water damage from a leak).
Contractor Availability: In areas like Cape May County, limited contractor networks may delay repairs. First American offers reimbursements if no local contractors are available.
Refrigerant Mandate: Since January 2025, R-410A refrigerant is phased out, potentially requiring system replacements. First American doesn't charge extra for new refrigerants, unlike some competitors.
Caution: Avoid overpromising. Educate clients that warranties aren't a catch-all, preventing dissatisfaction if claims are partially covered
Actionable Tips for Realtors
Setting Client Expectations
Buyers
Frame inspections as a history lesson for the home, not a renovation checklist. Highlight safety and structural priorities.
Sellers
Discuss disclosures and pre-listing inspections to minimize surprises Ensure utilities are active to avoid inspection delays
Communicating with Inspectors and Warranty Providers
Inspectors
Build relationships with reliable inspectors like Rich, who communicate clearly and avoid alarmism Request post-inspection discussions to clarify findings.
Warranties
Clarify what's covered and what isn't, using Claudia's analogy of warranties as budget buffers, not full replacements
Warranty Providers
Contact reps like Claudia or Jennifer Jones for claim support or coverage questions Respect privacy rules—only homeowners can share inspection reports with warranty companies.
Using Home Warranties as a Marketing Tool
Listings
Advertise warranties in MLS descriptions and open house flyers to attract buyers.
Client Follow-Ups
Gift warranty brochures as closing keepsakes, reinforcing your value.
Staying Informed on Industry Trends
Social Media
Share success stories (e.g., a warranty-covered repair) to build trust, with client permission.
Regulations: Monitor changes like the 2025 refrigerant mandate or New Jersey's seller disclosure requirement.
Networking: Attend Shore AHA Club meetings to learn from peers and vendors.
Education: Use resources like First American's QR-coded brochures for detailed warranty terms.
Resources and Conclusion
Contact Information
Rich Gilson, RTG Home
Inspections
Specializes in thorough, solution-oriented inspections
Email: richtgilson@gmail.com
Phone: (609) 435-4417
Claudia Jones, First American Home Warranty
Regional Manager, serving New Jersey and beyond.
Email: claudiajones@firstam com
Phone: (609) 471-8822
Alternate Contact: Jennifer Jones, Southern NJ Rep (jennjones@fahw com)
Shore AHA Club Benefits
Monthly Meetings
Collaborate with peers and learn from industry experts.
Community
Join a brand-agnostic network focused on mutual success.
Conclusion
Resource Sharing
Access eBooks, vendor contacts, and best practices.
Join Us
Contact Helen-Ann at helenann@shoreaha.com to get involved.
The Shore AHA Club is committed to empowering realtors through collaboration and education This eBook captures the wisdom shared by Rich Gilson and Claudia Jones, offering practical strategies to navigate home inspections and leverage home warranties. By setting clear expectations, building strong vendor relationships, and using warranties strategically, you can enhance client trust and differentiate your services. Apply these insights to your next transaction, and join us at the next AHA Club meeting to continue growing together Here's to closing more deals with confidence and care!
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